Non-life insurances - Malaysia | Statista Market Forecast

The Non-life insurance market in Malaysia is projected to reach a market size (gross written premium) of US$7.02bn in 2024.
On average, Malaysians are expected to spend US$202.50 per capita in the Non-life insurance market in 2024.
The gross written premium is projected to grow at an annual rate of 1.32% from 2024 to 2029, resulting in a market volume of US$7.50bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium of US$2.5tn in 2024.
Non-life insurance in Malaysia is witnessing a surge in demand due to the increasing awareness about the importance of financial protection among the population.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

The Non-life insurances market in Malaysia is experiencing a significant growth trajectory, driven by various factors shaping consumer preferences, market trends, and local circumstances.

Customer preferences: Customers in Malaysia are increasingly seeking comprehensive non-life insurance coverage to protect their assets and mitigate risks. With rising disposable income levels and awareness about the importance of insurance, individuals and businesses are showing a growing inclination towards policies that offer extensive coverage for property, health, and motor vehicles.

Trends in the market: One prominent trend in the Malaysian non-life insurance market is the increasing adoption of digital channels for purchasing insurance products. Insurers are leveraging technology to enhance customer experience, offer personalized policies, and streamline claims processes. Additionally, there is a growing demand for niche insurance products tailored to specific needs, such as cyber insurance and environmental liability coverage.

Local special circumstances: The regulatory environment in Malaysia plays a significant role in shaping the non-life insurance market. The regulatory framework ensures consumer protection, promotes market stability, and encourages innovation in product offerings. Moreover, the diverse demographic landscape of Malaysia, with a mix of urban and rural populations, influences the types of insurance products that are in demand across different regions.

Underlying macroeconomic factors: The economic growth of Malaysia, coupled with increasing urbanization and infrastructure development, is contributing to the expansion of the non-life insurance market. As individuals and businesses accumulate wealth and assets, there is a growing awareness of the need to safeguard these assets against unforeseen events. Furthermore, the country's stable political environment and efforts to promote financial literacy are fostering a favorable climate for the growth of the insurance sector.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.